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Thursday, June 24, 2021
Home Uncategorized FG offers tariff relief of N10.20 per kilowatt hour to Nigerians

FG offers tariff relief of N10.20 per kilowatt hour to Nigerians

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.As VAT proceeds from NESI to be used

 

The Federal Government and the Organized Labour, on the completion of the two weeks suspension of electricity tariff have resolved to provide tariff relief of N10.20 per kilowatt hour for Nigerians for the next three months and to distribute six million free meters.

The meeting resolved among others that the governors will use VAT proceeds from the Nigerian Electricity Supply Industry to reduce the September increases by 10 to 31 per cent for bans A to C. Band D will remains frozen.

It also agreed that the reversed electricity tariff hike should be maintained for another one week after the initial two weeks expired.

The extension according to the meeting is to enable an implementation committee to draft a workable plan after the FG and organised labour technial Committee chaired by Minister of State for Labour and Employment submitted its interim report.

■Recommendation by the technical committee for six million meters to be distributed to homes before December 2020, but unfortunately, only 1 million meters are available which almost marred the deliberations.

However, after an intense deliberation, it was agreed for distribution of one million meters from October to December based on the lack of capacity of local meter manufacturers, which have only been able to produce just a little above 300,000 meters .

The meeting also deliberated that 6 million metres to be made available by the Federal  Government, to be funded by Federal Government, do not exonerate the distribution companies of their responsibility of Metering of Electricity Consumers also labour accused government ( NERC) of weak regulation in the power sector since it was privatized as responsible for the obvious poor performance prevalence in the sector.

It was also agreed that the Nigerian Electricity Regulatory Commission, NERC will meet with the Central Bank of Nigeria, CBN on further deliberation on placing electricity workers’ salaries on first line charge.

Other resolution include: .

■The meeting between Federal Government and the Organised Labour also agreed that NERC should issue instruction to DisCos on  cases of over billing for customers without meters, Capping of Estimated Billing

■That Import waiver should be granted to the  electricity sector to as part of sector wide incentives for the post  privatised Nigerian  electricity sector to aid further reduction on tariff charges  by the Federal Government.

■The meeting resolved to co-opt the NNPC into the committee due to the price of gas supply

■The Festus Keyamo Technical committee is empowered to work between October 12 to December 12, 2020 to ensure all outstanding issues are resolved.

On the various palliatives promised by government to cushion the effect of fuel and electricity increases, the meeting resolved that ministries departments and agencies should be given one week to get back on the items agreed.

 

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